UK Committee Questions Drax Over Use of Power Subsidy Loophole

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Drax Group Plc defended its use of subsidy programs at the height of the energy crisis that allowed it to rake in huge profits, during a hearing with lawmakers.

The biomass energy company reduced output at one unit — which runs on the Contracts for Difference mechanism — which would have sent about £639 million back to consumers if run normally, a Bloomberg News analysis showed in August. Meanwhile, it increased production at units without revenue caps.

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